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Contango 💃🏾🕺@contango_xyz·May 16

Wtf is the basis rate you see on Contango?

Simple. 

It’s the difference between the expirable price and the spot.

Low basis? ▶️ Cheaper leverage to go long!

High basis? ▶️ Cash and carry time! (see more on: bit.ly/3I5cUJ8))

Post by @contango_xyz.lens
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    Contango 💃🏾🕺@contango_xyz·May 16

    Example: a few days ago you could pay ~7$ to get 5x leverage on 10 $ETH until Sept '23.

    This basis rate is known upfront and baked into your entry price.

    So, beside your margin, to go long you just had to pay $0.66*10=$6.6 + gas/trading fees. 🤑

    It’s that simple.

    (NFA)

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